Featurespace, a leading provider of Adaptive Behavioral Analytics for fraud detection and risk management, has raised $32.3 million (£25 million) from a funding round led by Insight Venture Partners, a New York-based global private equity and venture capital firm focused on high-growth investments in the technology sector, and MissionOG, a U.S.-based venture capital firm with significant operational and investment experience across the financial services and payments industries.
The round also included further funding from existing investors including IP Group plc, Highland Europe, TTV Capital, Robert Sansom and Invoke Capital.
The funding will be used to support Featurespace’s international expansion and continued development of the company’s software capabilities.
The investment will also support the continued distribution of Featurespace’s real-time ARIC™ platform, which uses Adaptive Behavioral Analytics to detect anomalies in individual behavior for fraud and risk management.
Martina King, Featurespace CEO, commented:
“We have made tremendous progress over the last 15 months since our last fund raising – and this fund raise is the largest to date. The additional funds will enable us to continue rapidly growing the business internationally by focusing on our products, our people and our customers.”
“Working very closely with our customers, we have developed a market-leading product to meet their fraud detection and prevention requirements. We have also significantly strengthened our senior management team and operational infrastructure, and opened an office in Atlanta, Georgia.”
“We have also grown our financial services customer base and now are working with 17 banks across continental Europe, the U.K., U.S. and Latin America. Equally important, we have become the technology partner of choice to a number of payment processors and merchant acquirers that have embedded our real-time fraud prevention technology in their anti-fraud solutions.”
Jeff Horing, Co-Founder and Managing Director at Insight Venture Partners, commented:
“We have been following Featurespace’s growth for over two years. Following extensive customer and product due diligence, we were delighted with market feedback around the product and team. We welcome Featurespace into our portfolio and look forward to helping the company drive international growth.”
Gene Lockhart, Chairman and Managing Partner at MissionOG, commented:
“Martina King, David Excell and team have built a dynamic culture that has led to a well-defined and successful market focus. Their efforts are evidenced by strong sales momentum with notable clients in various segments, including multinational banks, payments companies, issuer processors and merchant acquirers.”
“We’re excited to partner with Featurespace and introduce our network and platform to continue to drive value and growth.”